Most Tennessee residents have felt the pinch of the uncertain economy over the last few years. People had to pay more for essentials, like food and gas, while dealing with steady or declining wages and rising healthcare costs. All of these factors have combined together and created difficult financial situations for many families.
People who are struggling to pay their debts should know that debt relief options are available. In some cases, a bankruptcy is the best way for a person to get a fresh financial start. In particular, a Chapter 13 bankruptcy can provide people with the relief they need.
Under Chapter 13 bankruptcy, people can discharge their debts after completing a repayment plan. This plan will last either three or five years. Once it is completed, remaining debt will be discharged — as long as the debt is unsecured and allowable, and the court approves the discharge. The bankruptcy will then stay on a person’s credit report for seven years.
While this discharge is not immediate — like it is in a Chapter 7 bankruptcy — people will be allowed to keep their personal property. In a Chapter 7 bankruptcy, people can only keep property that is exempt from sale. Other property will be sold by the bankruptcy trustee to repay debts. Furthermore, some consumers will not qualify for Chapter 7 bankruptcy and will only qualify for relief under Chapter 13 bankruptcy.
There are lots of things to consider when someone faces bankruptcy. People should make sure they understand all their options before filing. While a Chapter 13 bankruptcy can be a good decision in some cases, other debt relief options may also be available. But, what is important for Tennessee residents to know, is that they should not have to suffer under crippling debt or with creditor harassment, instead they should learn about which debt relief options would work best for them.
Source: FOX Business, “When is a Bankruptcy Officially Discharged?,” Erica Sandberg, Aug. 4, 2014